Vietnam's New Public Employee Law Grants More Rights, Stricter Accountability from July 1

Vietnam's Law on Public Employees 2025 officially takes effect on July 1, ushering in significant changes to the regulations governing civil servants. This new legislation replaces the 2010 law and its amendments, introducing notable updates concerning salaries, professional activities, performance evaluations, and disciplinary actions.

A key change expands the professional rights of public employees. Under the new law, civil servants can now sign labor or service contracts with other organizations, provided it doesn't violate specialized laws, create conflicts of interest, or breach anti-corruption regulations. Furthermore, they are permitted to contribute capital and participate in the management and operation of businesses, cooperatives, hospitals, educational institutions, and non-public research organizations, unless otherwise specified by law. This marks a departure from the previous law, which only allowed capital contribution without direct management involvement.

The law also revises the remuneration structure for public employees. Previously, salaries were solely drawn from the public non-business unit's payroll. From July 1, their income can be supplemented by other legal sources, aiming to facilitate performance-based pay systems tied to financial autonomy and increased earnings. This reform is expected to provide a legal basis for public service providers to implement more flexible and performance-driven compensation models.

Alongside expanded rights, the Law on Public Employees 2025 also tightens accountability. New obligations include applying science, technology, and digital transformation in task execution. Employees must refrain from posting or disseminating false information that could harm the reputation of the country, locality, or their workplace. Significantly, the law introduces 'the capacity for innovation, creativity, daring to think, daring to act, and daring to take responsibility for the common good' as a criterion for evaluating public employees, alongside political and ethical qualities.